Blockchain advisory services
Specialists in token economy design, implementation and maintenance of token economies for our clients.
Newtown Partners’ blockchain investment and advisory services team specializes in token economy design (also referred to as cryptoeconomics), implementation and maintenance of customized digital token economies for our clients.
We have assisted startups that we’ve invested in, with designing and issuing cryptocurrency tokens since 2016. We invest significant time and skill in ensuring that the tokens we work with have utility and value across a wide spectrum of industries and use cases. Recent industries that we’ve worked in include identity management (Civic), financial services (Wala), augmented reality (Augmentors), media, cybersecurity and esports.
Many startups have looked at creating de-facto cryptocurrencies using blockchain technology. Cryptographic tokenization is the process of creating a blockchain-based currency that can function as one or more of a unit of account, store of value, medium-of-exchange or a utility essential to the network. Unfortunately, issuing a token alone is not enough for the token to attract and retain value. If the token serves no clear and necessary purpose in the network or product for which it was issued, then it will become worthless to users and backers that purchased the token in either the token sale or on cryptocurrency exchanges.
A number of software platforms and service providers have recently sprung up offering token sale demand generation, but as the number of token sale opportunities has mushroomed, these vendors have become touts in bazaars – adding little value to either token issuers or backers aside from access and awareness. Unfortunately, this means that most tokens that are sold today will become worthless – they aren’t well designed to begin with and they’re not implemented to ensure that they have high network utility and value-capture mechanisms.
To ensure that issued tokens have utility and attract and retain value, it is necessary to design a micro-economy around a token supply, so there will be demand and supply for the token and economic incentives to hold, stake or exchange the token.